Trafford Council has agreed a deal with Amey to transfer staff and services in its economic growth, environment and infrastructure departments in a bid to save £2m a year.
The local aurthority said the move would reduce costs by an initial £2.25m in 2015/16. Services to be delivered by Amey include ground maintenance, road safety, corporate landlord services, lettings and major project advice. Amey will also take over the commercial and domestic waste contract from Veolia.
The contract award was confirmed by the Trafford Council executive at the end of last week. Around 350 staff are expected to transfer to Amey by summer 2015.
A report to the executive said: "Trafford faces substantial financial pressures and the budgets for 2015 to 2018 require innovative savings provisions to be considered. This has involved a number of different approaches including reducing contract costs through improved procurement, commissioning of services, managing demand and partnership working."
Other bidders for the contract included Balfour Beatty and Kier.
Amey said that it was in a standstill period but would release further information on the contract win next week.
Cllr Sean Anstee, leader of Trafford Council, said: "Trafford Council has to realise revenue savings of £57m in the coming years and we cannot keep up the same level of service without looking at different ways of providing services.
"This is just one of the ways we are reshaping Trafford Council's services to find alternative ways of providing services; residents should not see a change in the maintenance of the borough as a result."